Research at NASA Langley Research Center (NASA LaRC) has identified several commercially available thermoplastic polymers that self-heal after ballistic impact and through-penetration. One of these resins, polybutadiene graft copolymer (PB(sub g)), was processed with unsized IM7 carbon fibers to fabricate reinforced composite material for further evaluation. Temperature dependent characteristics, such as the degradation point, glass transition (T(sub g)), and viscosity of the PBg polymer were characterized by thermogravimetric analysis (TGA), differential scanning calorimetry (DSC), and dynamic parallel plate rheology. The PBg resin was processed into approximately equal to 22.0 cm wide unidirectional prepreg tape in the NASA LaRC Advanced Composites Processing Research Laboratory. Data from polymer thermal characterization guided the determination of a processing cycle used to fabricate quasi-isotropic 32-ply laminate panels in various dimensions up to 30.5cm x 30.5cm in a vacuum press. The consolidation quality of these panels was analyzed by optical microscopy and acid digestion. The process cycle was further optimized based on these results and quasi-isotropic, [45/0/-45/90]4S, 15.24cm x 15.24cm laminate panels were fabricated for mechanical property characterization. The compression strength after impact (CAI) of the IM7/pBG composites was measured both before and after an elevated temperature and pressure healing cycle. The results of the processing development effort of this composite material as well as the results of the mechanical property characterization are presented in this paper.